In the report, Morgan Stanley noted, “MR reported in-line 1Q14 sales growth on continued weak China business but stabilized ex-China growth, while non-GAAP profit was also in line. Notably, operating income was 13% below our estimate, but helped by the lower tax rate. Given the challenging China environment and the departure of the COO, Mr. Liu Jie, who has been instrumental to Mindray's healthy growth in the past few years, we do not expect improving profit growth in the near term.”